Wired Editor Chris Anderson discusses the Long Tail.
From the video notes:
“Everything is measurable now,” said Anderson, comparing charts of sales over time of a hit music album with a niche album. The hit declined steeply, the niche album kept its legs. The “long tail” of innumerable tiny-sellers is populated by old hits as well as new and old niche items. That’s the time dimension. For the first time in history, archives have a business model. Old stuff is more profitable because the acquisition cost is lower and customer satisfaction is higher. Infinite-inventory Netflix occupies the sweet spot for movie distribution, while Blockbuster is saddled with the tyranny of the new.
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